HARARE – Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) says trade union bosses implicated in a Premier Service Medical Aid Society (PSMAS) looting scandal must face the music.

This follows the arrest Friday of Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) chairperson, Cecilia Alexander on allegations of defrauding the troubled health insurer.

PSMAS CEO Farai Muchena and three of his senior subordinates also appeared in court on Thursday for allegedly squandering US$702,386 which was meant for drug purchases after misrepresenting facts to Fidelity Printers in a gold deal.

According to prosecutors, in 2020, the PSMAS board passed a resolution authorising management to venture into buying and selling of gold to try and generate much needed foreign currency to procure pharmaceutical drugs and other related medical equipment.

The board resolved that staff members from PSMAS’ procurement department were to act as buyers and agents for gold on behalf of the medical aid scheme founded by civil servants.

According to the state, between 2019 and 2022, the four received gold from five of the private agencies.

They then sold the gold to Fidelity, realising cash amounting to US$702,386.80.

Alexander – the government preferred negotiator under the National Joint Negotiating Council for civil servants – is faces fraud for allegedly inflating holiday allowances which were due to her from PSMAS where she is a Board member supposedly representing workers.

Following the allegations, Obert Masaraure, ARTUZ president called on all those accused of pillaging the health insurer’s assets to be brought to account.

“At some point PSMAS would collect as much as USD250 million in subscriptions. This was enough to invest in a sustainable model of consistently providing health care services to subscribers,” Masaraure said in a statement.

“As ARTUZ we call for an immediate restoration of the PSMAS constitution and an urgent AGM to elect a new Board and start the process of resuscitating the institution.

“Furthermore, we demand that all individuals fingered in the looting of PSMAS must be treated equally before the law.

“There must be no sacred cows in the matter and all who are involved should be arrested and have their day in court.”